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Today’s Highlights:
⏳ OpenAI delays launch of its open model
🚀 SpaceX invests $2B into Elon’s xAI
🧠 Google acquires Windsurf’s top AI talent
🧪 AWS quietly launches new AI tool, Kiro
🇨🇳 China’s Kimi K2 takes on ChatGPT
🧩 Predis AI: Create AI-powered ads & social posts
🛠️ Tool of the day you’ll want to try
🌐 Top trending AI + tech news
Read Time: 4 mintue
LATEST AI NEWS
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OPENAI
Image Source: Getty Images
OpenAI has postponed the release of its highly anticipated open model indefinitely, citing the need for further safety testing. The model was expected this week and is now on hold with no revised timeline.
The Details:
CEO Sam Altman cited the need to assess high-risk areas before public release
The model’s weights, once released, are irreversible — making caution critical
It’s expected to match the performance of OpenAI’s o-series models
OpenAI says the model is “phenomenal” but needs more work to meet its internal bar
This would be OpenAI’s first open-weight model in years, designed to run locally
Why it matters:
OpenAI’s decision shows how seriously it’s treating the risks of open-weight models, especially as rivals like Moonshot, xAI, and Anthropic move fast. The delay may frustrate developers but signals a broader shift: even the most capable labs are pausing to consider safety before shipping powerful tools to the public.
ELON MUSK
Image Source: Getty Images
Elon Musk’s space company is reportedly backing his AI startup, xAI, with a multibillion-dollar investment — marking one of the largest cross-company investments within Musk’s business empire.
The Details:
SpaceX’s $2 billion investment would be its first in xAI and one of the largest cross-company investments Musk has ever executed
The deal is part of a broader $10 billion funding strategy that includes $5 billion in equity and $5 billion in debt, managed by Morgan Stanley
xAI’s chatbot Grok is already being used by SpaceX to handle customer service for its Starlink internet service
Tesla has also started integrating Grok into its vehicles, while xAI has merged operations with Musk’s social platform X
Despite recent controversy over Grok’s offensive outputs, Musk’s companies continue to rely on the model, signaling deep internal support
Why it matters:
This move shows how Musk is leveraging his empire to strengthen xAI’s position in the AI race. A multibillion-dollar boost from SpaceX could give xAI the firepower it needs to compete with OpenAI, Anthropic, and Google in a rapidly evolving market.
Image Source: Getty Images
OpenAI’s $3 billion acquisition of Windsurf has collapsed. Instead, Google DeepMind is hiring Windsurf’s top executives and engineers to double down on agentic coding for its Gemini model, both companies confirmed Friday.
The Details:
Windsurf CEO Varun Mohan, cofounder Douglas Chen, and several R&D team members will now work at Google DeepMind
The team will focus on enhancing Gemini’s agentic coding capabilities, one of Google’s key AI initiatives
Google is not acquiring Windsurf nor taking a stake but will receive a non-exclusive license to parts of its tech
Jeff Wang becomes interim CEO of Windsurf, and Graham Moreno is promoted to president as the startup enters a new chapter
OpenAI was previously in talks to acquire Windsurf for $3 billion, but the deal has been scrapped
Why it matters:
Google just snatched a top-tier AI team away from OpenAI in a high-stakes battle for AI talent. With Gemini competing directly against ChatGPT, these hires could give Google an edge in building smarter, more autonomous AI agents, while Windsurf continues independently with a leadership reset.
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AI & TECH NEWS
Moonshot, backed by Alibaba, launched Kimi K2—an open-source AI model with top-tier coding skills and ultra-low costs. It’s free to use and priced well below ChatGPT or Claude, making it a strong pick for developers and startups looking to save.
Amazon Web Services introduced Kiro, an AI tool that drafts software specs, diagrams, and task lists before writing code. Powered by Anthropic, it targets “vibe coding” with private, prompt-based development. A clear rival to Google’s Windsurf and Microsoft’s Studio Code agents.
Meta will activate its first massive AI supercluster, Prometheus, in 2026 and plans to spend hundreds of billions on more. With power-hungry sites like Hyperion in the pipeline and $200M offers for top talent, Meta is going all-in on building systems smarter than humans.
The US Defense Department is investing up to $200 million in Anthropic, Google, OpenAI, and xAI to build AI agents for military use. xAI also launched “Grok for Government,” expanding access to its chatbot. The contracts aim to boost AI adoption and strategic edge.
Apple is facing investor pressure to speed up its AI game, with calls to acquire startups like Perplexity AI. With shares down 16% this year and rivals like Meta charging ahead, analysts say a major AI move could revive confidence and open big monetization doors.
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